What you include in your proposal letter will vary based on the project. Here are some seven steps to follow when composing a proposal letter:
Introduce yourself and provide background information.
State your purpose for the proposal.
Define your goals and objectives.
Highlight what sets you apart.
Briefly discuss the budget and how funds will be used.
Finish with a call to action and request a follow-up.
Close the letter and provide contact details.
Related: 5 Steps for Great Business Writing

1. Introduce yourself and provide background information
   The goal of your proposal’s introduction is to gain the interest of your reader. This paragraph should include basic information about your company and an overview of the topic to make it clear what the recipient will be reading.
   If you are following up on a meeting, briefly mention the meeting in the opening statements for context. If your business already has a relationship with your letter’s recipient, mention this as well.
2. State your purpose for the proposal
   Your purpose for the proposal is what you intend to accomplish, or what problem exists that you intend to fix. A proposal for a business arrangement would provide clear details and basic terms of the arrangement, while a proposal to redesign a company website would discuss your understanding of their current website issues.
3. Define your goals and objectives
   Describe the long-term outcomes you plan to meet and the objectives you will establish to get you there. Be very clear and include specific figures if possible.
   For example, instead of, “We will increase our productivity significantly with this loan,” you might write, “We will increase our productivity by 40% over the next year with the loan amount we have requested. We will increase our productivity with the addition of two new machines and four additional employees.”
   Related: What Is the Difference Between Goals and Objectives?
4. Highlight what sets you apart
   If your proposal is the answer to a company’s problem, showcasing your valuable assets can help you stand out. State some of your special skills related to the project and the reasons you are the best fit for the job. This might include experience with a similar issue or outlining a unique process that gets great results.
   If your proposal is for a business venture, highlight a few factors that differentiate your ideas from others. When highlighting your key differentiators, you could use bullet points to list your features so they’re easier to read.
5. Briefly discuss budget and how funds will be used
   Cost is a major factor for decision-makers. Depending on your reason for writing a proposal letter, you may need to include details on how you will use a loan or how much your project will cost investors. You will probably not need to include a full account of costs, but providing a general idea of the budget will give investors a better look at the project.
   Related: How To Make a Budget Plan in 6 Steps
6. Finish with a call to action and request a follow-up
   A call to action is a request for your recipient to take additional steps and creates an urgency for them to move forward. This can increase the chances that they will respond. This action might be to simply reply to your proposal if they would like to speak further.
   Also, including your intentions to follow up with them makes it clear you are serious about your proposal. Let them know the specific day you will contact them again so they can expect your call or email.
   Related: 15 Business Follow-Up Email Templates
7. Close the letter and provide contact details
   Thank the recipient for their consideration of your proposal and encourage them to contact you if they have any questions. End the letter with a professional closing, such as “Sincerely” or “Regards,” followed by a comma. Type your name a few lines below, then sign your name above your typed name.